The Legislative Intent is to Apply Section 56(2)(viib) Where Unaccounted Money Received in Garb of Share Premium

The Legislative Intent is to Apply Section 56(2)(viib) Where Unaccounted Money Received in Garb of Share Premium

In the case of Clearview Healthcare P. Ltd vs ITO, ITAT Delhi has held that:

Keeping in view of the facts and circumstances of the case and by applying the principles from the aforesaid decision and legislative intent behind insertion of section 56(2)(viib), I hold that addition made by AO on account of alleged excess share premium is unjustified when those very shares are sold in next financial year at much higher amount after proper due diligence, that to a non resident buyer and further there is no case of unaccounted money being brought in garb of stated share premium, hence, addition made u/s 56(2)(vii) of the Act is hereby deleted.

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Dhanraj Sharma

Dhanraj Sharma is CEO of Tax Concept. He is on a Mission to Educate and Empower 10,000+ Professionals across the Country.

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